The Present Value of an Expected Future Payment ________ as the Interest

question 37

Multiple Choice

The present value of an expected future payment ________ as the interest rate increases.

• A)falls
• B)rises
• C)is constant
• D)is unaffected

---

Definitions:

Satisfaction

The feeling of pleasure or contentment arising from meeting one's needs, desires, or expectations.

Utility

A measure of satisfaction or benefit that a consumer receives from consuming goods and services.

Consumer Derives

The satisfaction or utility that a consumer obtains from the consumption of goods and services.

Total Utility

The complete fulfillment obtained from the consumption of a specific overall amount of a product or service.